Positive Drill Results from the Rukwa Coal Project

RNS Number : 8034K

Edenville Energy PLC

28 August 2012

 

28^th August 2012

EDENVILLE ENERGY PLC ("Edenville" or the "Company")

Positive Drill Results from the Rukwa Coal Project, Tanzania

Edenville Energy plc (AIM:EDL), the coal focused African energy exploration and development company, today announces receipt of the drill core assay results from drillhole MK12-029 collared at the Mkomolo deposit on the Rukwa Coalfield project in south western Tanzania.

Highlights:

·         Float and sink sample results received for MK12-029

·         Additional positive indications of thermal quality coal mineralisation

·         Results confirm thickening of coal measures in northern part of basin

·         Coal measure thickness of over 70m

o Cumulative coal thickness of 19.04m within hole. 

·         Drilling intersections indicate improved coal grades and confidence  within the  April 2012 resource drilling area

Float and sink analysis results have been received for drillhole MK12-029 which was collared within the northern margin of the currently defined inferred resource area. The results have confirmed both coal grades and the continuity of coal measures. This hole was drilled vertically and is located 220m up-dip along section from MK11-018, drilled in 2011. Coal measures where intersected between 82.20m and 153.40m below surface, an intersected thickness of 71.20m.

Coal quality and thickness are encouraging with yields and Gross CV (Calorific Value) increasing in this northern area. Values indicate that yields in this zone of the northern block have increased from an average as defined by Wardell Armstrong International ("WAI") in their Resource report of 26% to an average of approximately 80% at a similar grade of 17Mj/kg. This brings the possibility of increasing the tonnage potential within this northern block due to the improved grades and yields The coal is  termed as 'Bar Coded' with intervening units of barren sandstone and shales and will require washing to produce a commercial product.

As previously announced on the 13^th August, the results will allow our recently engaged consultants, Sound Mining Solutions Ltd. ("SMS") of South Africa, to upgrade the resource to  the measured and indicated category . Following the receipt of  laboratory results from this 2012 drilling programme, the revised statement is expected in Q1 2013.

Two additional holes have been completed to the north of MK12-029, with results pending and an additional further three holes are planned once access is prepared, which will extend the zone a futher 3 km north of this currently reported borehole (MK12-029). Due to these very positive results further holes are now planned to step back and extend northwards to ensure this area has sufficient drilling density to be included in the updated resource

Simon Rollason, Chairman of Edenville, commented today; "I am delighted to announce these results to the market. The results clearly indicate the highly prospective nature of the Mkomolo basin: this hole has returned significant results in an area where historically no coal had been identified. This will further assist the Company in achieving its previously stated objective of increasing the confidence to the quantity and quality of Edenville's existing resource at the Mkomolo coal project, while allowing for the preparation of an upgrade resource estimate in Q1 2013 once all laboratory results have been received. "

Coal Quality and Resource Testing

Float & Sink analysis from holes MK12-029 cored during the 2012 drill programme has now been received from the Alfred H Knight Laboratory, Ayrshire, an internationally accredited coal analysis laboratory in Scotland. This analysis indicates the amount (% yield) and quality of coal that could be obtained from the deposit by mining and processing.

The coal bearing strata, defined here as the Coal Measures, intersected by the drillholes comprises an interlaminated/interbedded sequence of coals and mudstones, with include coal-rich horizons comprising a high proportion of coal.

The drillhole is located in the northern part of the Mkomolo basin which remains open-ended both to the north and down dip. This drillhole was drilled vertically.

Extracts from the results are summarised below:

Hole ID	From (m)	To (m)	Interval (m)	Wash R.D.	Moisture %	Ash %	Volatile %	F.C. %	Sulphur %	Gross C.v.  MJ/kg	Yield%
MK12-029	95.76	96.18	0.42	F1.90	4.4	28.4	24.7	42.5	4.48	20.436	82.4
	96.52	97.29	0.77	F1.90	4.9	37.7	21.4	36.0	2.33	17.300	38.6
	97.29	97.92	0.63	F1.80	5.9	31.7	24.9	37.5	2.73	18.760	85.0
	103.60	104.00	0.40	F1.90	5.4	27.1	29.8	37.7	5.46	20.447	60.5
	104.00	104.91	0.91	F2.00	4.8	25.6	28.5	41.0	3.21	21.170	98.7
	106.22	106.64	0.42	F2.00	4.0	29.6	26.4	40.0	2.76	20.008	96.4
	107.04	107.70	0.66	F2.00	4.5	28.2	27.5	39.7	2.75	20.334	62.2
	108.40	108.92	0.52	F2.00	5.7	25.2	31.0	38.2	3.48	21.074	85.3
	108.92	112.53	3.61	F1.80	5.5	33.1	26.3	35.1	3.80	18.542	45.3
	137.40	138.30	0.90	F1.80	5.1	31.6	23.6	39.7	2.37	19.065	50.6
	139.20	139.59	0.39	F1.90	3.3	34.9	27.6	34.2	2.94	18.402	66.7
	139.59	141.60	2.01	F1.90	3.8	32.5	21.4	42.2	3.40	19.180	47.1
	141.60	142.65	1.05	F1.90	3.6	31.9	22.8	41.7	4.28	19.516	67.5
	142.65	143.42	0.77	F1.80	3.7	32.8	26.6	36.9	3.68	19.212	64.7
	143.42	145.65	2.23	F2.00	4.0	27.4	27.2	41.3	5.02	21.178	88.3
	145.65	147.03	1.38	F2.00	5.0	29.1	22.4	43.5	2.49	20.095	89.5
	147.03	148.00	0.97	F2.00	4.2	31.3	24.4	40.2	2.51	20.234	95.3
	148.00	149.00	1.00	F1.90	3.3	37.1	27.4	32.2	4.37	17.959	43.9

Cumulative Results from Fractional analysis (Results are reported on an air-dry basis)

 F.C. - Fixed Carbon, C.V. - Calorific Value

In accordance with the AIM Rules, the information in this announcement has been reviewed by Mark J. Pryor, Managing Director of Edenville Energy PLC, a qualified geologist with over 25 years' experience.

Contact:

Edenville Energy plc
Simon Rollason - Chairman Rakesh Patel - Finance Director www.edenville-energy.com	[phone]
ZAI Corporate Finance Ltd
Ray Zimmerman/ Marc Cramsie	[phone]
Newgate Threadneedle
Grahame Herring/Richard Gotla	[phone]

 

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